The effect of tax policies on income distribution

The main purpose of this study is to analyze the effects of tax policies on income distribution inequality and human development. Using the GINI coefficient representing income distribution and the HDI variables indicating human development, the effects of different tax types on these two basic economic and social indicators were examined. The data set consists of annual data for the period 2000-2023. The data in TL within the scope of the 2010 base year were deflated with the GDP deflator. The logarithm of the data was taken. The results of the study showed that income tax and property tax stand out as important factors affecting income distribution. Incometax had a significant effect on the GINI coefficient, especially in the 2nd and 3rd lags. This indicates that income tax has a mechanism to reduce income inequality and that this effect occurs with a certain time lag. Similarly, property tax was found to have a significant effect on the GINI coefficient. Since property tax is a type of income generally obtained from wealthy individuals, the income inequality reducing effect of this tax was observed more directly. When the effects on HDI representing human development were examined in the study, it was seen that income tax was again an important factor. Income tax had a significant effect on HDI at the 3rd lag, indicating that the effect of income tax on human development emerged over time.